There will be a moment in your life where you probably wonder how you can start to save money each month consistently. What would you do with that extra monthly cash? Put it towards paying down debt? Maybe add it to your savings account or investments? Use it for a nice vacation?
Whatever your reasoning, saving more money monthly is an awesome feeling and rewarding too. But where exactly do you start? Sometimes the thought of “where” and “how” can be intimidating or confusing, but it doesn’t have to be. Here are a few tips and steps so you can start to save money each month and set yourself up to be more financially secure.
1. Monitor utility bills
Besides being conscience of your energy consumption (electric and gas), you’ll want to always monitor your actual bills that come in. Limiting your use of energy will help you save, but watch for any odd charges or spikes in costs of your energy providers.
You can save yourself costs by calling in, catching mistakes, or potentially switching if the company refuses to work with you if they spike the bills. If you don’t actively look at the recurring monthly bills, you might be missing opportunities to save.
2. Cancel subscriptions you don’t need or use
This was my favorite for saving money monthly, because it’s so easy to do and can put hundreds back in your wallet a year. Have cable and aren’t really watching much? Cancel it and sign up for Netflix, Youtube Premium, Hulu, etc. Of course, don’t get them all if you want to save each month, but you have alternatives to the ever growing costs of cable and satellite.
3. Become a good negotiator
A great skill to learn that can help your finances is becoming a good negotiator. Almost anything you can think of, you can negotiate just by speaking up and presenting your case. This doesn’t mean begging just because you want a lower price. But you can ask or present why something should be cheaper, which can help you save.
4. Shop around for deals
When you do need to make some purchase, especially something much larger, it is important to shop around for deals and not just go with the first option you have. This includes anything from insurance, cell phones, home maintenance items, etc. Always make a list and compare options before spending your money. You might be able to find some serious big savings, or even a little bit that will add up over time. Everything is getting more expensive so it will be on you to do some grunt work to find the most cost effective option.
5. Earn cashback from everyday purchases
While it is important to cut back on frivolous or impulsive spending, you can’t avoid buying things all your life either. While you can shop around for the best deals and use coupons, you can also earn cashback on items you buy as well. Not exactly saving you money, but it is putting some cash back in your wallet after making purchases.
6. Consider consolidating any debt
If you have credit card debt, you are probably paying high interest on it. Thus, costing you a nice chunk of change every month. Now, this option is not the best fit for everyone, but something to consider is consolidating your debt into lower interest. What this does is essentially merges multiple bills into a single debt that is paid off by a loan or through a management program. You can learn more about this option here.
7. Put that pay raise to savings
Many people will experience getting a raise and when you do, a great option is to bank that extra each month. If you haven’t gotten a raise in awhile, it’s probably time to ask for one. But too often our natural desire is to upgrade our lifestyle if we get a decent raise or spend money a bit more loosely. However, if you want to start saving more money monthly, the better option is to immediately send that additional money to your savings or investments (Remember, pay yourself first).
8. Use bank accounts with good interest
When you are putting your money into a savings account, you want that money to accrue some interest. Unfortunately, most big banks or credit unions do not offer great interest rates on your money (I’m talking less than 1% or fractions of percent). A good way to save more money monthly is to park your emergency fund or separate savings into a high-yield savings account. Typically, you’ll find anything in the 2-3% range, which doesn’t sound like much but as your savings grows, it will add some money towards your savings each month.